Support to Training and EmploymentProgramme for Women (STEP)

Programme Implementation Manual

Ministry of Women & Child DevelopmentGovernment of India

March, 2011

Towards a new dawn

About the Manual

This Manual is an attempt to elaborate operational details of STEP for

guidance and use of implementing agencies of this scheme. The document

describes various steps and processes involved in designing and implementation

of projects under the scheme. It also elaborates procedures of sanction of the

project and release of grants to implementing agencies.

The Manual is divided into five sections covering the following:

Section-I • Background • Objectives • Salient Features • Pattern of Assistance

Section II

• Project Preparation • Sector Identification • Beneficiaries identification • Project formulation • Project Submission

Section III

• Scrutiny of proposals • Advice from Technical Department • Approval of PSC • Financial Sanction

Section IV

• Project Implementation • Convergence of Services

Section V

• Project Monitoring & Evaluation ANNEX

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List of Abbreviations

BPL Below Poverty LineCDPO Child Development Project OfficerCSWB Central Social Welfare BoardDDO District Development OfficerDRDA District Rural Development AgencyGIA Grants-in-Aid GOI Government of IndiaICDS Integrated Child Development ServicesICPS Integrated Child Protection SchemeIFD Integrated Finance DivisionIGMSY Indira Gandhi Matritava Sahyog YojnaKVIC Khadi & Village Industries CommissionKVIB Khadi & Village Industries BoardMIS Management Information SystemMWCD Ministry of Women and Child DevelopmentNABARD National Bank for Agriculture and Rural Development NGO Non Governmental OrganizationNIPCCD National Institute for Public Cooperation and Child Development PERT Chart Programme Evaluation and Review Technique Chart PSC Project Sanctioning CommitteeQPR Quarterly Progress ReportRMK Rashtriya Mahila KoshSABLA Rajiv Gandhi National Scheme for Empowerment of Adolescent GirlsSC/ST Scheduled Caste/Scheduled TribesSHG Self Help GroupSLEC State Level Empowered CommitteeSTEP Support to Training and Employment program for Women VO Voluntary OrganizationWDC Women Development Corporation

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Contents

Page No. About the Manual i List of Abbreviations ii Section-I Background, Objectives & Pattern of Assistance

1.1 Background 1 1.2 Objectives 2 1.3 Salient Features 2

1.3.1 Services Provided 2 1.3.2 Sectors Covered 3 1.3.3 Target Group 4 1.3.4 Beneficiary Coverage in a Project 4 1.3.5 Eligible Implementing Agencies 4 1.3.6 Duration of Project 5 1.4 Pattern of Assistance 5

1.4.1 Quantum of Assistance 5 1.4.2 Cost Structure of Different Components 6

Section-II Project Preparation & Submission

2.1 Project Preparation 7 2.1.1 Pre-Project Activities 7 2.2 Sector Identification 8 2.3 Identification of beneficiaries 8 2.4 Project Formulation 9 2.5 Submission of Proposals 10

Section-III Project Scrutiny & Sanction

3.1 Initial Scrutiny 11 3.1.1 Scrutiny of Projects by SLEC 11 3.1.2 Composition of SLEC 12 3.2 Examination of Project Proposals 12

3.2.1 Advice from Technical Departments 12 3.2.2 Consideration by PSC 12 3.2.3 Composition of PSC 13 3.3 Financial Sanction 13

3.3.1 Processing of Bill 14 3.3.2 Dispatch of Demand Drafts/Transfer by ECS 14

Section-IV Project Activities

4.1 Project Implementation 15 4.1.1 Mobilization of women into SHGs 15 4.1.2 Training of Beneficiaries 16 4.1.3 Access to Credit 17

4.1.4 Arrangements for Backward and Forward linkages 18 4.2 Convergence of Services

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Page No. Section-V Project Monitoring & Evaluation

5.1 Project Implementation Monitoring 20 5.1.1 Project Monitoring Committee 20 5.1.2 Role of Monitoring Committee 20 5.2 Quarterly Progress Report 21

5.2.1 Use of Information Technology Tools 21 5.2.2 Issue of Photo I-cards 215.3 Role of State Govt. 21

5.3.1 Inspection Report by State Govt. 22 5.4 Project Evaluation 22

5.4.1 Modalities of Entrusting Evaluation Work 22 5.4.2 Suggested Indicators for the Evaluation of the Project 23

Annex I Format for Benchmark Survey 26 II Application Form for seeking assistance 28 III Checklist for CDPOs for processing of Proposals 38 IV Check List for SLEC for processing of proposals 39 V Checklist for Examination of Project Proposals in the Ministry 40 VI General Checklist for Grant in Aid Schemes 42 VII Standard Terms & Conditions with Sanction Letter 44 VIII Utilization Certificate for STEP Scheme 46 IX List of documents to be submitted for grant of subsequent

installments of fund 47

X NABARD's guidelines on Organization of Women in SHGs 48 XI Format for Quarterly Monitoring 55 XII Inspection Proforma 60

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Section-I

Background, Objectives & Pattern of Assistance

1.1 Background

As per 2001 census, there are 496.45 million women representing 48.26 percent of total population of the country. However, out of the 127.22 million women workforce of the country, majority are in informal sectors with concentration in rural/semi urban areas. They often face situations of extreme poverty, given the harsh realities of intra-household and social discrimination. These women are vulnerable due to uncertainty of livelihood that is a consequence of their low level of skills and low capacity besides several other handicaps. Therefore, the critical need is to take measures which would ensure guarantee of employment and income generation of such women through training and provision of productive assets and support services.

Experience has shown that the main obstacles for women to start their own enterprise are gender specific barriers. Difficult access to credit and collateral at times coupled with high interest loans, limited bargaining power and limited mobility, dependency on male members and male dominated markets are some of the key constraints.

The Ministry of Women & Child Development launched a Central Sector scheme named Support to Training & Employment Programme for women (STEP) in the year 1986-87 with an objective of extending training for up-gradation of skills and sustainable employment for women through a variety of action oriented projects which employ women in large numbers. The scheme was revised in the year 2009-10 and covers 10 traditional sectors of employment besides the option of supporting the locally appropriate sectors.

STEP aims to make a significant impact on condition of women by upgrading skills for self and wage employment. It seeks to support women’s work by providing a range of inputs with special focus on training for skill up-gradation, marketing and credit linkages to ensure sustainable employment. The sequence of activities envisaged under the programme is to mobilize women into viable groups, improve their skills, arrange for productive assets/access to wage employment, create backward and forward linkages, provide access to credit, arrange for support services and awareness generation, gender sensitization, etc. The scheme not only aims at imparting training for upgrading skills to enhance income of beneficiaries but also provides a package of services

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consisting of education, health check-up, nutrition, nutrition education, legal literacy and crèche facilities for dependent children, etc.

Thus STEP advocates an integrated package of inputs aiming at

the overall development of women by strengthening their presence in traditional sectors and opening up other area specific sectors/trades which can help women to become economically independent. The ultimate endeavor of each project under STEP is to develop the women groups to thrive on a self-sustaining basis in the market place with minimal governmental support and intervention.

1.2 Objectives

The objectives of the programme are:- i. Mobilise women in viable groups and make facilities available through

training, access to credit, arrangement for productive assets and other inputs

ii. Provide training for skill up-gradation iii. Enable groups of women to take up employment or income

generation programmes of their own, or to access wage employment, and

iv. Provide support services for further improving employment conditions of women and access to health care, literacy, legal literacy, nutrition education and other information.

1.3 Salient Features 1.3.1 Services Provided

The programme aims to provide an integrated package of the following services to women enabling them to become economically independent and to improve their socio-economic status.

• Facilitate organization of women

• Up-grade skills through training • Better and sustainable employment opportunities

• Backward and forward linkages

• Support services with the coverage of:

- Health check-ups - Referral services - Mobile crèches - Education facilities - Nutrition education

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1.3.2 Sectors Covered

Details of the sectors covered under the scheme at present and an illustrative list of few activities that can be taken up by women are indicated in the table below.

Sr. No.

Sector Suggested Activities

1 Agriculture Mushroom Cultivation, Bee Keeping, Medicinal Plants Cultivation, Horticulture, Floriculture, Vermiculture, Backyard Vegetable Cultivation

2 Dairying Small Milch/Dairy Animal (Buffalo, Cow) Rearing Units, Milk Collection & Selling, Milk Processing (Ghee, Paneer, Khoya)

3 Animal Husbandry

Goat/Sheep Rearing for Meat/Wool, Backyard Poultry & Indigenous Birds (Ducks, Quails), Piggery, Rabbit Rearing, etc.

4 Fisheries

Fish Rearing/Seed Production in Small Ponds, Fish Processing (Drying, Fish Pickle), Fishing Net Making & Repair, Fish Feed Production, Small Hatcheries, Wage Employment (Through Feeding, Watch & Ward, De-weeding of Ponds, Harvesting)

5 Handloom Weaving, Processing (Dyeing, Bleaching, Mercerising), Packaging,

6 Handicrafts Production of Handicraft Items, Processing Activities (Polishing, Colouring),

7 Khadi & Village Industries

All activities approved by KVIC/KVIB

8 Sericulture Mulberry Cultivation, Cocoon Rearing, Reeling of Yarn

9 Social Forestry and Forest Based Activities

Raising Nurseries, Cultivation of Forest Species on Forest Land/Wastelands, Collection of Minor Forest Produce (Gum, Berries, Medicinal/Herbal Products, Honey)

10 Waste Land Development

Raising Nurseries, Cultivation of Fodder, Fruit and Timber Crops, Watershed Development Activities, Developing Wadis,

11 Food Processing *

Fruits and Vegetable Processing for making Jam, Jelly, Murabba, Petha, Chips/Wafers, Noodles, Papad, Pickle, Bakery Products

12 Services Sector *

Health, House-keeping Services, Tourism, Security Services, Organised Retail Marketing (Sales Women in Shopping Malls), Construction Based Activities (Mason, Plumber, Electrician), etc.

13 Any Other Locally Appropriate Sector

These sectors may be added from time to time by MWCD in consultation with the State Governments.

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* These two sectors have been newly added to the list of eligible sectors based on consultations held with State Governments. Feasible proposals covering activities under these sectors will be considered for sanction w.e.f. April, 2011 onwards.

1.3.3 Target Group The target group to be covered under the projects of STEP include:

• Marginalized, asset less rural and urban women • Wage labourers, unpaid daily workers • Female headed households • Migrant labourers • Tribal and other dis-possessed groups

Special focus will be on SC/ST households, women headed households and families below the poverty line. Particular attention will be paid to women living in districts already identified by the State Women and Child Development Department / Women Development Corporations in States. Local institutions or organizations may identify target groups and areas where women are particularly disadvantaged or need assistance. 1.3.4 Beneficiary Coverage in a Project

Each project can cover a minimum of 200 and maximum of 10,000 women beneficiaries depending upon the nature of the project and capacity of the organization and demographical area proposed to be covered by the project. Only direct trainees are counted as beneficiaries. In estimating the number of beneficiaries under each project, family members of the woman beneficiary are not be counted as beneficiaries unless the member of the family is also a trainee. 1.3.5 Eligible Implementing Agencies

STEP is to be implemented through Public Sector Organizations, District

Rural Development Agencies (DRDAs), Federations, Co-operatives and Non- Governmental or Voluntary Organizations with a legal status as a Society registered under the Societies Registration Act of 1860 or under the corresponding State Acts.

These agencies/organizations are required to be registered for at least 3 years (with experience in the sector concerned) at the time of applying for assistance. Implementing agencies may also identify a set of link agencies which would facilitate the implementation of the project through their expertise, resources and experience. Link agencies can include voluntary organizations active in the field of employment and women development.

While selecting Non-Governmental Organizations as implementing agencies, it will be ensured that the selected organisations have adequate infrastructure and technical expertise in the sector, financial soundness with facilities, resources, experience and administrative capabilities for undertaking the project.

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1.3.6 Duration of Project

Projects will be sanctioned for a period not exceeding 5 years, depending upon the nature, kind of activities to be undertaken and the number of beneficiaries to be covered. 1.4 Pattern of Assistance 1.4.1 Quantum of Assistance

Projects in various sectors will evidently vary widely in terms of size,

cost, etc. Therefore, the projects to be sanctioned under STEP scheme will be funded as per the norms approved/prescribed by NABARD/KVIC/KVIB/Banks. In the areas/cases where norms approved/prescribed by NABARD are not available, the advice of the concerned Technical Department/Ministry will be obtained before a project is submitted to the Project Sanctioning Committee for approval. Services of other agencies/institutes may be taken for pre-appraisal of the project proposals or technical advice, if required.

The quantum of assistance would be linked to the number of

beneficiaries covered under the project, with a cap of Rs. 16000/- per beneficiary. In sanctioning projects, it will be ensured that a tapering budget is prepared so that the project becomes self-sustaining on completion of its term.

Details of the pattern of assistance for the scheme are given in the

following table:

Sr. No.

Particulars of Components Eligible Assistance

1 Administration, Training/Capacity Building and Marketing

• Project Staff and Administrative Cost • Training Stipend, Training of Trainers, Skill Up-

gradation/ Reinforcement, Training-cum-Production Centers and Raw Material for Training

• Support to members for formation of co-operative societies, producers, workers co-operative, leading to formal legal organizations.

• Support services-Education, General Awareness, health care sanitation, nutrition/ creche facilities for dependent children. Wherever convergences of these services are not available, these will be provided as part of the project cost.

• Marketing Support - Marketing/Sales Personnel, Stock Provision and Buyers’ Credit, Godowns, Marketing Outlets, Quality Control and Managerial Support.

100%

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1.4.2 Cost Structure of Different Components

Under the programme, 90% of the project cost is funded by the Government of India. The remaining 10% will have to be borne by the implementing agency from its own resources or from sources other than the Government of India.

COST STRUCTURE OF DIFFERENT COMPONENTS (in %)

Note: - Since the programme is to cover a wide variety of projects, the project cost is bound to vary, however, with a view to covering the sequence of activities as envisaged under the scheme, the funding pattern of different components will be as indicated in the above table with the permissible flexibility upto 5% (+ or -) within the component-wise break up of project cost.

2 Construction of Work Sheds/Production Centers (not related with training) Balance 50% cost will have to be borne by the implementing agency.

50%

3 Working Capital/Raw Material Requirements Financial Assistance will be provided for working capital and raw material in a phased manner starting with 100% during the first year, 50% in the second year and 30% in the third year of the project. This phasing is considered essential to minimize the otherwise exorbitant costs and also because the ultimate aim of the STEP is to make these projects self-sufficient or take them to a stage where the beneficiaries will meet their credit requirements from Rashtriya Mahila Kosh, NABARD or other credit institutions like nationalized Banks and Co-operatives. The implementing agencies will have to arrange for credit after the project is over as these projects are of the nature of catalytic agents for development.

100% - 1st yr 50% - 2nd yr 30% - 3rd yr

Sl. No. Items of Expenditure Percentage1 Administration & project staff 6% 2 Training (technical/skill training) and orientation of

beneficiaries & Project functionaries20%

3 Infrastructure including marketing support, quality control and managerial support

25%

4 Raw material for training including equipment and other materials required for training

25%

5 Establishment of developmental cooperatives wherever required, mobilization and strengthening of field level set- ups where such support is not available through the existing set-up

10%

6 Support services (wherever such services are not available or cannot be organized)

8 %

7 Overriding cost 6%

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Section-II Project preparation and Submission

2.1 Project Preparation

Projects for seeking financial assistance under the scheme shall be

prepared keeping in view the basic objectives of the programme. Project reports will be prepared in the prescribed format given at Annexure-I. A project report will clearly indicate various stages of its preparation, as also the details of the activities to be undertaken during its implementation. Broadly, a project report will cover following areas.

• Pre-Project Activities • Sector Identification • Identification of Beneficiaries • Project Formulation

2.1.1 Pre-Project Activities

The pre-project activities include undertaking benchmark survey which is an essential pre-requisite for every project for need analysis of the particular area. A meticulously conducted benchmark survey is required to assess the socio-economic conditions of the target group and also to ascertain the project performance with respect to various indicators, besides its impact on the status of women beneficiaries, on the completion of the project. The survey would capture primary data/information in respect of targeted beneficiaries covering following broad areas.

• Personal details • Demographic profile of the family • Ownership of assets • Consumption pattern • Skill sets • Other relevant information

Similarly, detailed information would also have to be collected in respect of the area of operation of the project (village/locality), covering following areas.

• Location (proximity to big cities) • Population (sex ratio, caste profile, religion, etc.) • Literacy level • Occupational profile (agriculture, non-farm sector, wage employment,

etc.) • Infrastructure (roads, electricity, schools, health centres, banks, post

office, transportation, communication, etc.) • Developmental programs being implemented in the village (Govt.

sponsored and others) • Any other relevant information (An illustrative schedule/format for undertaking benchmark survey is given at Annex- I)

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Information/data collected through benchmark survey will form the basis

for various activities under the project like identification of sector/vocation, a detailed assessment of the existing skill levels of women in the project area in the concerned sector, identification of the training needs, preparation of a strategy to bridging the gaps identified in the skill sets, providing necessary linkages and other support services, etc. 2.2 Sector Identification

The implementing agency will identify the sectors that hold potential for

improving the employment opportunity and enterprise development in conjunction with the women beneficiaries. The implementing agency will undertake an analysis of the proposed sector to ascertain its suitability for enhancing the socio-economic status of women. Criteria followed for sector selection by the implementing agency would be a critical step in programme design, which would require strategic thinking about overall programme objectives and ways to maximize the impact. The chosen sector should have high potential for development and growth in micro enterprise income and employment for economically vulnerable women. Choice of sector should be made keeping in view the following factors.

• Education, training and skill sets of the targeted women • Local demand and market penetration • Demand on women’s time (they have productive/income earning duties

as well as household and family care duties) • Comfort level of women (sometimes women are not comfortable with a

few activities, not because of lack of ability or technical skills, but because of socio-cultural set-up, especially in rural areas)

• Mobility restrictions • Access and control over resources The criticality of commercial viability in context of the prevailing market may

also be ascertained. Thus, the thrust area for selection of the sectors must be market demand and growth potential and potential increase in income besides opportunities for linkages.

2.3 Identification of Beneficiaries

The beneficiaries to be covered under the project would be identified on

the basis of the information/data collected through benchmark survey and keeping in view the guidelines of STEP. Preference would be given to marginalized, asset less rural and urban women, wage labourers, unpaid daily workers, female headed households, migrant labourers and tribal and other dispossessed groups of women.

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2.4 Project Formulation The project design will provide detailed information on the following aspects. • Project goals and outcomes (to be quantified) • Activities to be undertaken • Overall project budget (with appropriate component-wise break-up) • Technical feasibility of the proposed activities (keeping in view the

climatic conditions, skill sets available with the target group, availability of raw material/assets, processing facilities, marketing facilities, etc.)

• Financial viability of the proposed activities (on the basis of the cost of inputs, including women’s time, and the expected outputs)

• Credit mechanism, including linkage with the banks, steps for proper utilization of loans and its repayment.

• Supporting services like mobilization/organization of women, senisitisation/orientation, institutional arrangements, procurement of assets/raw material, creation of processing facilities, marketing interventions, linkage/networking with Govt., corporate and other entities for ensuring wage employment, etc.

• Training plan for imparting skill training to the beneficiaries after consultation with appropriate Technical/Vocational Institutes like National Council For Vocational Training(NCVT)

• Plan for monitoring of the project • Withdrawal strategy and plans for the sustainability of the project

In addition to the above, the implementing agency will have to ensure that

inputs relating to health, nutrition education, adult literacy, awareness generation on women's rights, etc., would be provided to the beneficiaries of STEP project in consultation with State WCD and Health Departments, Directorates of Adult Education, Central Social Welfare Board and State Social Welfare Boards to ensure that all-round capacity building of women beneficiaries takes place.

Keeping the above points in view, the implementing agency will clearly

elaborate the strategy as to how the project will address the following activities: • Mobilize women into viable groups; • Improve their skills; • Arrange for productive assets; • Create backward and forward linkages; • Improve/arrange for support services (health, child-care, education) • Provide access to credit; • Undertake awareness generation; • Impart nutrition education; • Sensitize project functionaries; • Convergence of services.

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The implementing agency will prepare the project in the prescribed format at Annex-II along with the following documents:-

• Registration Certificate(RC)/Renewal of RC (if applicable) • Memorandum of Association and Bye-Laws of the Organization • Attested Copies of Audited Statement of Accounts (for preceding three

years) • Annual Report (for preceding three years) • Outline Map of the Project Area • Benchmark survey of intended beneficiaries • Marketing plan & linkup with financial institutions. • State Govt. recommendation with minutes of the SLEC meeting (to be

attached by State Govt). 2.5 Submission of proposals

This Ministry's has designated the Child Development Project Officers

(CDPOs) as Nodal Officers for all schemes of Ministry of Women & Child Development. At the Block level, CDPOs will be the interface between the implementing agencies like NGOs/VOs for submission of proposals under STEP. CDPOs will have to ensure that the documents submitted by the applicant organizations are complete in all respects. Proformas, columns, annexures must be complete and attached to the applications. During the visit by the CDPO, the organization applying for the sanction of projects must present all required documents for inspection. Detailed checklist of the steps to be taken by CDPOs on receipt of proposals is at Annex III.

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Section-III

PROJECT SCRUTINY AND SANCTION

3.1 Initial Scrutiny

All project proposals will be received by the CDPO, who will undertake a preliminary scrutiny of the same as per the prescribed checklist. Proposals scrutinized by the CDPO will be submitted to the District Level Officer along with the pre-sanction appraisal report in the prescribed format (Part C of Annexure-I) who will consolidate the proposals received from various CDPOs and will submit the same to SLEC for necessary action.

3.1.1 Scrutiny of Projects by State Level Empowered Committee (SLEC) The SLEC will undertake a detailed scrutiny of all the proposals received in the State with a view to ensure that the documentation is complete in all respects and the organizations recommended for the projects are capable of completing the same within the stipulated time. The SLEC is also to ensure that benchmark survey has been done covering all relevant points, the organization is fully eligible and competent to undertake the project and all requirements with regard to physical phasing, costing, arrangements for marketing and selling, working out of individual members earning and timelines and training requirements are being fulfilled. Detailed checklist for undertaking the scrutiny by the SLEC is at Annex-IV Before a project is sent to Ministry of Women & Child Development for consideration, it should be verified by the following officers, based on the financial outlay of a particular project.

Financial Outlay (In Rs.)

Officer Responsible

Up to 15 lakhs CDPO/District Welfare Officer 15 to 40 lakhs District Welfare Officer/District Programme Officer 40 lakhs to 75 lakhs Joint/Deputy Director 75 lakhs and above Director/Additional Director

The SLEC will submit the proposals which are complete and fulfill the required criteria to GOI for consideration with its recommendations, in the format given in the application form prescribed for submission of project proposals (at Annex-II) within 90 days of the receipt of scrutiny/verification report from CDPO/District Level Officer.

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3.1.2 Composition of the SLEC

The SLEC in States is headed by the Principal Secretary/ Commissioner,

WCD/Social Welfare and has representatives of Finance and concerned Technical Departments. 3.2 Examination of Project Proposals The project proposals received from the SLEC will be examined as per the guidelines of the STEP (a checklist is at Annex–V). The general checklist of GOI for grant-in-aid proposals will also be followed which is at Annex-VI. The project which is not found as per the schematic norms, will be referred back to the State for required rectification. In case of minor deficiencies, the required information/documents/clarification will be obtained from the State Govt/Organisation by the Ministry. 3.2.1 Advice from Technical Departments

Project proposals found complete in all respects will be referred to the

Technical Department concerned for their comments regarding technical feasibility and cost of the project. The broad parameters of technical appraisal are as under:-

a. Whether the objectives of the scheme are clearly defined and in accordance with the work programme?

b. Whether the project is feasible in the present form? If not, what modifications are required?

c. What are the benefits accruing to the target groups? d. What are the likely major outcomes and outputs of the project? e. What socio-economic impact will the project bring to the target group? f. Whether the project is in accordance with the guidelines of the STEP for

improving the livelihood security of rural women? g. Whether the proposed budget under each head is in accordance with the

output of the scheme or it needs modifications? 3.2.2 Consideration by Project Sanctioning Committee (PSC)

After the proposals are appraised by the concerned Department, these are considered by the PSC in the light of the comments of the Technical Department, State Government's views and the merits of the proposals. Representatives of the NGOs/Federations/Corporations and Technical Department also participate in the meeting. The decision of PSC is communicated to the concerned State Govts. as well as the Organizations concerned. Minutes of the PSC meeting are also uploaded on website of the Ministry. The PSC meeting will be convened once in every quarter so that time gap between the submitting of the proposal and sanction and implementation of the project may be reduced to the minimum.

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3.2.3 Composition of the Project Sanctioning Committee (PSC)

The PSC is headed by the Secretary, Ministry of Women & Child Development. It has representatives from the Planning Commission and Central Government Departments concerned with the subject matter/technical aspects of the proposals. State Government's representative and a representative from NIPCCD also invited to participate in this Committee.

Various stages in processing of project proposals received from project

implementation agencies are depicted below: 3.3 Financial Sanction

The proposals approved by the PSC will be processed for sanction in consultation with the Internal Finance Division (IFD) in the Ministry. After the concurrence of IFD for release of funds and certification about availability of funds by Budget Division, a financial sanction will be issued in favour of the concerned organization with a request to furnish Pre-Stamped Receipt (PSR) and a Bond for the amount sanctioned by Ministry along with Bank's name and the account number. The amount sanctioned to the Organization will be entered in the year-wise GIA register. The sanction letter will cover various items relating to the project including other terms and conditions. The terms and conditions attach to Sanction Letter of Grants-in-aid are at Annex-VII. Grants will be released to the implementing agency in installments, to cover the

Recommendation of CDPO

Recommendation of District Level Officer

Consideration by State Level Empowered

Committee (SLEC)

Examination by Technical Department

Proposal from Project Implementation Agencies

Consideration by Project Sanctioning Committee

Communication of decision taken by Project Sanctioning

Committee

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entire non-recurring expenditure and 50% of the recurring expenditure of the first year as the first installment of the grants. The second installment of grant will be released on annual basis amounting to 50% of the year’s grant (recurring) on receipt of the required documents including progress report, accounts and utilization certificate in the prescribed form duly certified by a Chartered Accountant or authorized official (Annex- VIII). Funds will be released for subsequent years on the same basis after receipt of the required documents (details are at Annex-IX). A copy of the sanction order regarding grant released will be sent to the State Govt. for their information and monitoring of project implementation. The release of subsequent installment of funds is also subject to receipt of other documents like Progress report, Inspection Report and Evaluation of the project, if due. 3.3.1 Processing of Bill After receipt of PSR and Bond from the concerned Organisation, the bill will be passed on to the Drawing & Disbursing Officer (DDO) of MWCD for further necessary action. The DDO will process the bill and request the Pay & Accounts Officer to issue cheque for the amount sanctioned. 3.3.2 Dispatch of Demand Draft/Transfer by ECS

After obtaining the cheque from the Pay & Accounts Officer, the same will be sent to the concerned implementing agency by Cash Section of the Ministry through Registered/Speed Post at the address given by the agency either in the form of Demand Draft or through the ECS in the bank account of the organization.

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Section-IV

PROJECT ACTIVITIES 4.1 Project Implementation

The implementing agency will give suitable orientation to its functionaries

towards the scope, objectives and requirements for effective implementation of the project. A broad sequence of activities envisaged under the project are listed below:

• Mobilization of women into viable groups/SHGs • Improve their skills for undertaking self-employment (micro enterprise)

and wage employment through training/skill up-gradation inputs • Provide access to credit • Arrange for productive assets • Arrange for support services (for procurement of raw material,

creation of processing facilities, marketing interventions, linkage/ networking with Govt., Corporates and other entities for ensuring wage employment, etc.)

4.1.1 Mobilization of Women into SHGs

The most important activity under the STEP projects is to organize the

poor, asset-less and marginalized women into vibrant and viable SHGs through active participation of the community in the project area. This process will be facilitated by the implementing agency with great sensitivity and through the participation of the community. The SHGs provide social space, especially for women to build their capacity to deal with various handicaps faced by them. SHGs also provide a platform to the targeted women to share issues confronting them and build their self confidence, besides giving opportunity for federating them into cooperatives. Implementing agency could consider initiating following steps for organizing targeted women into SHGs:

• Visit to the Identified Area – Facilitators from the implementing agency

should visit the very poor families in the village/locality, talk to them, especially the women (in case the people do not know them, they should first talk to them about themselves), ask what is the most important issue for the family and note down all the details

• Conduct a Preliminary Survey – With a view to capturing details of the prospective members in respect of family size, caste, literacy levels, health problems, occupation, ownership of assets, income, indebtedness, coverage under government sponsored programs, etc.

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• Meet the Prospective Members Again - When the Facilitator meets the prospective members for the second time, s/he should share with them the information about other families (contacted by the Facilitator) in the villages, which also have very similar problems. By visiting the families, the Facilitator will be able to know women from which of those families could come together in SHGs. She will also understand what their common requirements and problems are.

• Pre-SHG Formation Meeting - Before SHGs are formed, Facilitators

should hold a meeting of the community leaders and elders of the village. Explain to them their plan to form SHGs. It is very important to get support from them. This will also give acceptance to the Facilitators’ work in the village. This is the right time to tell everyone that the meetings are not for “giving” anything, but to “enable” the poor families to come together and help each other. It will be very useful if the Facilitator explains the basic principles of Self-Help Group in this meeting. Ministry of Rural Development, Govt. of India is implementing ‘National Livelihood Mission’ under which all the BPL families will be organized as in SHGs. Similarly, SHGs have been formed under some other programmes of the Govt./Banks. Therefore, implementing agencies will also make effort to utilize existing SHGs as far as possible.

(A detailed guideline used by NABARD on organising women into SHGs and their functioning is at Annex-X.) 4.1.2 Training of Beneficiaries

As the name suggests, training is the fulcrum of STEP. The whole programme revolves around providing training inputs to poor women for up-grading their skills and capacities, so that they can take up self-employment activities (micro enterprises) as well as wage employment. An implementing agency will have to address training requirements of different nature as a part of the project. Some of the areas which would require training interventions are listed below.

• Training for SHGs – This would include sensitization of group members about the concept of SHGs, training in managing internal lendings, training in book keeping/maintenance of accounts/ documents and leadership training.

• Training in Skill Transfer/Up-gradation – The main purpose of this training is to impart necessary skills (or up-grade existing skills) to enable them to take up a self-employment activity and/or become competent and qualified for taking up a wage employment. The implementing agency will explore the possibilities of imparting skill training to the beneficiaries after consulting with Technical/Vocational Institutes like National Council For Vocational Training(NCVT), which affiliate and recognize training. It will be the responsibility of the implementing agency to get in touch with such institutes which provide training in the particular sector. If valid certificates are issued by such institutes to the beneficiaries on completion of the training, the cost of certification, if any,

17

will be borne by the Ministry. This will also ensure a better employability for the trainees in future. The time lag between the training and supply of raw materials for starting of the project will be taken care of by the implementing agency. Many of the trainees drop out because of this delay and many of them cannot utilize the skill imparted in the training programme.

• Training for Micro Enterprise Development – Besides requisite/adequate skills, women also need inputs on how to set up a micro enterprise. The purpose of this training is to provide inputs on various aspects of an enterprise like the legal issues, government clearances/registration, products, pricing, technology, marketing, accounting, etc.

• Training for Sensitization and Awareness Generation – It is important to introduce the concepts of women empowerment to the beneficiaries. The training will also build the capacity of women to participate in the planning/designing of projects aimed at improving their socio-economic status

The implementing agency will clearly indicate in the project proposal, the requirements, as also the arrangements, for training of the beneficiaries, extension workers, field supervisors and technical staff, suitable training institutes, curriculum for training programmes and cost estimates for the same. No funds would be made available for setting-up additional training institutes. The existing infrastructure already available under various programmes should be utilized and training is to be imparted to the beneficiaries through qualified agencies/trainers. State Government agencies and regional offices of NIPCCD may be involved for coordination of the training arrangements. It should be ensured that the training is imparted not only in the technical and managerial aspects, but also in gender sensitization and development issues, including legal literacy.

The implementing agency should also consider taking help of Link Agencies like MYRADA, PRADAN, DHAN Foundation, BASIX etc. which have developed expertise in addressing the issues confronting poor women, including training for capacity building and skill up-gradation, in giving training inputs to the beneficiaries of the project.

4.1.3 Access to Credit

Credit is an important input for any economic activity. The implementing agency should encourage SHGs and its members to take up livelihood/income generating activities (both on a group basis and individually) under various sectors as indicated in Section-I. It should network with the banks operating in the project area for ensuring timely and adequate credit to SHGs and its members, thereby enabling them to take self-employment activities. The implementing agency should also explore various alternative channels of funding to help the beneficiaries access credit facilities. Following interventions are suggested in this regard.

18

• Help beneficiaries (SHGs/individual members) to prepare bankable project reports for the activities proposed to be financed under the project (NABARD has prepared model project reports for a number of activities popular among rural population. These reports are available on NABARD’s website www.nabard.org and can be used to prepare beneficiary specific project reports).

• Prepare an estimate of credit requirements of the beneficiaries (both term loan and working capital).

• Discuss the credit estimates with the Lead District Manager/District Development Manager (DDM) of NABARD and the bank branches in the project area and ensure that these estimates become part of the Annual Credit Plan of the branch.

• As regards credit to SHGs, the implementing agency should encourage internal saving and lending by the groups, help them to maintain proper record of transactions, emphasize the importance of timely repayments, help them in opening account with the bank and submitting credit proposals.

• Implementing agency could also act as a Business Facilitator and help the bank in increasing its business and improve recoveries.

4.1.4 Arrangements for Backward and Forward Linkages Strong forward and backward linkages are essential to ensure the viability and success of the economic activities of the project in the chosen sector. The implementing agency would ensure availability of backward and forward linkages for the economic activities proposed to be undertaken by the beneficiaries under the project. It will clearly indicate in the project report, the steps it proposes to take, for providing these linkages. The ultimate objective of the projects under STEP will be to ensure that the beneficiaries are able to develop and thrive on a self-sustaining basis in the market place in the long run with minimal governmental and formal support and intervention. A few areas where its intervention is considered necessary are indicated below.

• Procurement/Creation of Productive Assets – The Implementing agency shall provide all help and support to the beneficiaries in the procurement/creation of productive assets. It shall actively collaborate with suppliers/manufacturers of various items in public/ private sector for timely availability of assets, like seeds, planting material, fertlisers, pumpsets, drip/sprinkler sets, dairy and small animals, day old chicks & other birds for poultry activities, cattle/ poultry feed, fishing nets, fish feed, handlooms, yarn, small machine tools & equipment, etc. Implementing agency shall procure the assets required by the project beneficiaries in bulk, so as reduce the cost of procurement and transportation.

• Arrangements for Processing, Transportation & Storage – Implementing agency will also make arrangements for the primary processing of the goods produced by the project beneficiaries. Creation of facilities for grading & sorting of agricultural produce, bulk coolers for milk, abattoirs/slaughter houses for meat poultry sector, dyeing/bleaching & printing facilities for handlooms, etc., should form an integral part of

19

the project. Similarly, arrangements for packaging, storage and transportation of goods produced under the project will have to be made by the implementing agency.

• Marketing of Produce - Marketing is one of the most critical components of any enterprise. No enterprise can generate profits unless the goods and services produced by it are sold. Projects prepared by the implementing agencies shall have specific mention about the marketing strategies to be adopted for sale of goods and services of the beneficiaries. Implementing agency could explore the possibilities of having a tie-up with the following entities for the purpose.

Participation in Marketing Events – Implementing agency may also consider participating in national, state and regional level marketing events organized by Development Commissioner (Handlooms), Development Commissioner (Handicrafts) and various other government/private agencies.

Establishment of Marketing Outlets – Financial assistance is available from various developmental organizations, like NABARD, Rashtriya Mahila Kosh (RMK), Development Commissioners of Handlooms and Handicrafts, banks and the government departments concerned, for creation of marketing infrastructure for rural produce. This includes opening/renovation of showrooms/ emporias, establishment of ‘Rural Haats’ and ‘Rural Marts’, Mobile Sales Vans, etc. Implementing agency should make efforts for obtaining financial assistance from various sources for creating marketing infrastructure for the beneficiaries under the project.

4.2 Convergence of Services

Since the overarching goal of the scheme is economic empowerment of women, it not only aims at imparting training for the up-gradation of skills to enhance the income of beneficiaries but also a package of services consisting of health check-ups, nutrition, nutrition education, legal literacy, education, crèches facilities, gender sensitization, etc. These services are to be converged in the STEP areas through existing programmes of Ministry of Women and Child Development and various other Ministries like Health, Education, Rural Development, besides State Governments.

20

Section V

Project Monitoring & Evaluation

5.1 Project Implementation Monitoring Monitoring of the projects sanctioned under the STEP is critical to its success especially since the project envisages to cover the marginalized and assetless women. Monitoring is not a policing exercise, imposed from outside but as a crucial learning exercise to keep the project implementation on right track, make correction & improve performance. The implementing agencies of STEP are required to ensure sustained monitoring of project activities with due diligence as per the stipulations prescribed under the scheme. The following institutional mechanism has been put in place for undertaking monitoring of projects as per schematic norms. 5.1.1 Project Monitoring Committee

In an area where a project has been sanctioned, a Project Monitoring

Committee will be formed comprising the following members:

i. Representative from the State Women & Child Development/ Social Welfare Department i.e CDPO/ DPO etc.

ii. Representative from the CSWB/SSWB iii. Representative from the link agencies iv. Person/persons from academic and other institutions, who have

specialized knowledge in the sector/activity concerned for the project under implementation

v. Members from Panchayati Raj Institutions.

The implementing agency will also inform the Ministry the date/ time & venue of the meeting and minutes of every meeting of the monitoring committee duly signed will be sent to the Ministry. 5.1.2 Role of Project Monitoring Committee The Project Monitoring Committee will review the progress of the project on a regular basis. This review will be done by the Committee, which will hold meetings as frequently as possible and at least once every quarter and undertake regular review of the progress made under the project. Each project will have its own Management Information System (MIS), including a Programme Evaluation and Review Technique (PERT) Chart, which would indicate the progress of the project since the time of its sanction, to the stage of stabilization and getting returns. The Project Monitoring Committee will review the Monitoring Plan developed by the implementing agency at the time of formulation of the project and update it, if necessary. It will help the implementing agency to develop a strong monitoring system to track and follow-up the activities of the beneficiaries and address their problems.

21

5.2 Quarterly Progress Report Each implementing agency will submit a Quarterly Progress Report

(QPR) in the prescribed proforma (at Annex-XI) to the Ministry of Women & Child Development through the concerned Department/Agency of the State Govt. The Ministry may also hold Review Meetings, preferably on half yearly basis, to assess the cost benefit effectiveness of each project with respect to the parameters of number of women covered, trained and employed; availability of credit from financial institutions; socio-economic status of the groups of women covered (SC/ST women, BPL women etc.); increase in production/productivity and levels of income; creation of assets during the period and employment opportunities created on ad hoc or sustainable basis. 5.2.1 Use of Information Technology Tools The implementing agencies will also ensure the optimum utilization of IT tools while preparing the progress reports. This Ministry is also working to devise software to expeditiously monitor the progress of project implementation. As soon as a project is sanctioned by the Ministry, the agency will be provided password and user id to access the web-portal on which they have to upload all the required information in the prescribed format. The implementing agency will online upload all the physical and financial achievements under the project alongwith milestones achieved vis-à-vis targets as per the sanctioned plan. Besides, they will also have to online upload list and photos of all the beneficiaries who have been covered under the project. 5.2.2 Issue of Photo I-cards The implementing agency will issue Photo Identity Cards to all beneficiaries for the project and the agency will enclose details of beneficiaries covered and I-cards issued to those beneficiaries with the QPR. While undertaking inspection of the project, CDPO/DPO will cross check the list of beneficiaries furnished by the organisation with the beneficiaries available in the project area. 5.3 Role of State Governments

State Governments will play a vital role in implementation of STEP right from planning stage itself and support the implementing agencies for successful implementation of the projects. State Governments and Women Development Corporations would be involved in identifying economically viable projects and committed implementing agencies, helping them in preparation of projects, arranging for required training, facilitating access of women groups to credit etc. Linkages of implementing agencies with State Departments concerned and with the existing programmes of the State are crucial so as to enable the beneficiaries to optimally utilize the services provided under various programmes for development of women. The

22

implementing agencies will be assisted by the concerned State Department to effectively co-ordinate and draw upon the resources of existing infrastructure and services under programmes of the Ministry of WCD such as ICDS, ICPS, Swadhar, SABLA, IGMSY, etc.

For effective monitoring of STEP projects, a representative of State Government will attend the meeting of Project Monitoring Committee and verify the facts and figures of achievement vis-à-vis targets set for the project as sanctioned. They will also advise the implementing agency about the steps needed to be taken to address bottlenecks in implementation. The State Governments will also forward the proposal for release of subsequent installment of funds with all the required documents as given in Annexure-IX.

The State Government will undertake need analysis of the skills of poor

and assetless women on frequent intervals to identify the gaps between skilled and semi-skilled women and also identify the potential beneficiaries for the programme. They are also required to encourage capable and credible agencies to come forward with feasible projects for these women to bridge the gaps. 5.3.1 Inspection Report by State Government. Each implementing agency is required to submit all the required reports/ documents like QPR, UC, Minutes of the Monitoring Committee, Audited Statement of accounts etc. to the CDPO/ DPO present in the project area on half-yearly basis who will undertake inspection of the organisation with a view to check the correctness of facts/ figures furnished by the implementing agency. After undertaking the said inspection, the CDPO/DPO will forward all these reports/ documents furnished by the agency, Inspection Report in the prescribed format (at Annex-XII) with specific comments regarding release of further installment of fund to State Govt. Thereafter, the State Govt. will forward all the reports/documents to the Ministry with their specific recommendation. 5.4 Project Evaluation

The mid-term evaluation of the project will be carried out through an independent agency. The evaluation will be undertaken to assess both sectoral impacts of the projects under STEP as well as the impact of each of the projects being implemented on the status of women beneficiaries.

5.4.1 Modalities of entrusting evaluation work to suitable Evaluation Agency

A research organization with appropriate knowledge and experience in evaluating employment oriented programmes will be selected by the Ministry for undertaking the mid-term evaluation. The evaluation agency will be selected on the basis of the experience of the agency, familiarity with the concerned sector, distance from the headquarter of the implementing agency and from the project area and reasonableness the cost estimate will be identified well before the evaluation is due. After selecting the evaluation agency, a communication from the Ministry will be addressed to the concerned evaluation agency as well as the implementing agency whose project is be evaluated. The Ministry will

23

provide all necessary documents including copy of the project. The implementing agency will also provide all information and records as required by the evaluation agency and extend full co-operation to it.

The time frame for conducting evaluation of a project may differ from project to project depending upon the project/sector and area of implementation.

The sample size of the project for evaluation is generally 25% of total beneficiaries and groups formed under the project and coverage is all the villages/ District under project implementation. Evaluation agency will submit its evaluation report to the Ministry within the stipulated time frame. It will also send a copy of its evaluation report to the concerned implementing agency. The Ministry will organize periodic meetings with evaluation agencies to discuss the finding and follow up measures.

5.4.2 Suggested parameters considered in the evaluation of the project

Evaluation of the project is to be based on specific, measurable, achievable, relevant, and time-bond (SMART) indicators, which would facilitate to track the implementation of a project effectively. The focus of evaluation should be on identifying a set of quantitative and qualitative output indicators, which are practical, easy to monitor and reliable. A suggestive list of indicators that can be used for evaluation of STEP project is as under:-

Category Indicators Social Capital Development

No. of common interest groups formed- of which, number of groups active and sustainable Improved social status of participant households and capacity to participate in development activities beyond Inclusiveness of Panchayati Raj Institutons, women SHG federations, etc., in decision makingOperation and management arrangements, including type, regularity and value benefit contributions

Economic Improvement

Infrastructure created –type, number, economic value, quality and utilization Improvements in practical skills among participants (e.g., planning and decision making, entrepreneurial, technical, financial and management skills)Increase in access to end utilization of social and exonimic services (including credit, markets, health, and education)Number of credit-worthy, bank-linked groups; volume of savings and micro-enterprises started and successful Increased income and ownership of assets among participants households

Organizational Strength

Number of villagers who know or who have heard about organization or groups

24

Frequency of attendance of participants in the meeting Number of meetings held each month

Group Participation

Number of groups or rural organization formed under the project

Socio-Economic composition of groups Number of person/ days of labour contributed Material and money contributed by group Funds collected from local sources and used for

maintenance work Participation of members Capacity to maintain local facilities

25

Annex

to

Programme Implementation Manual

for

STEP

Ministry of Women & Child Development Government of India

2011

26

ANNEX-I

SUGGESTIVE FORMAT FOR COLLECTION OF INFORMATION FOR BENCHMATK SURVEY A. Personal Information on Beneficiary

* Major source of livelihood and family employment ** Allied (second) source of livelihood and family employment B. Demographic Profile of the Family/Household

Sr. No.

Name of the Family

Member (Including Head of

Household)

Relation

With Head of HH

Sex(M/F)

Age(Year

s)

Occupation (Including

that of Head

of HH)

Annual Family Income

(Rs.)

Indebtedness

Amt. (Rs.) Source1 2 3 4 5 C. Other Information on Social Indicators

Sr. No.

Particulars Yes / No Value/Amt. (Rs.)

1 Ownership of Immovable Assets by the Household a Land b House c Shop d Others (Please Mention)

2 Ownership of Movable Assets by the Household a Two Wheeler b Television c Cable Connection d Refrigerators e Other Household Appliances (Please Mention)

3 Ownership of Other Assets by the Household a Cattle b Draught Animals c Poultry

4 Banking Transactions / Investments a Deposit - Savings Bank b Fixed Deposit c Loans d Insurance e Others, If Any

Name

Address

Marital Status (Married/Unmarried)

Literate/ Illiterate

Formal Education

Primary Occupation *

Secondary Occupation **

1 2 3 4 5 6 7

27

D. Consumption Pattern

SL. No.

Particulars Amount Spent (Rs.)

Remarks

a Food i. Traditional

ii. Purchased From Market/Packed Food b Housing (if rented) c Clothing (Purchase of Ready to Wear

Clothes)

d Consumption of Fuel/Energy e Awareness About Education of Children f Awareness About Health care & Hygiene g Major Illness in the Family h Access To Medical Facilities

(Traditional/Modern)

i Entertainment/Leisure j Participation in Social Customs/Traditions

(Birth/Marriage/Death Rituals & Ceremonies)

E. Details of Skill Sets

Skills

Available Present Level of

Skills (Basic/ Adequate/

Expert)

Whether training/skill development

input received in the past (Yes/No)

If yes, name of the institution/trainer,

duration and the type of training received

(formal/informal/ apprentice)

Impact of training/skill development

input (not useful/of some

use/very useful)

Training/skill

development input

required now

1 2 3 4 5

F. Other Details

Whether covered under any Govt.

Sponsored program (Yes/No)

If yes, name of the

program

Financial assistance received

Whether member of an existing SHG

(Yes/No)

If yes, details of

Subsidy(Rs.)

Loan(Rs.)

Savings(Rs.)

Loan(Rs.)

1 2 3 4

28

ANNEX-II

APPLICATION FORM

Support to Training and Employment Programme for Women (STEP)

Part- A: THE ORGANISATION 1. Name and full Postal address of the head office of the Organisation

District

State

Pin Code

2. Telephone No. with STD code 3. Fax No. 4. Bank details of the organization 5. Do the bye laws of the NGO permit it to receive Govt. grants and implement women’s programmes in the proposed project area? 6. Objectives of the Organisation 7. Brief History of the Organisation 8. Whether registered under Indian Societies Registration Act (ACT XXI of 1860) if so, give the number and date of registration. State the period of validity of the Registration Certificate (RC). In case renewal of RC is required, has it been done (attach documentary evidence). 9. Whether the organisation is of all India character: if yes, give the address of its branches in different States including the State Branch which will run the programme with Phone No. Fax No. Etc. 10. Whether organisation is located in its own/rented building 11. Major activities of the Organisation in the last 3 years: Sr. no. Name of activity Coverage Expenditure

Men Women Children 12. Financial status of the Organization in the last 3 years (Rs. in Lakhs)

Year Income & Expenditure Receipt & Payment Surplus /Deficit

29

13. Details of grants received from Central Govt./ State Govt. and other Govt. agencies in the last 3 years: (Rs. in Lakhs) Sl. no.

Sanction order No.

Date Amount Scheme Address of funding agency

14. Details of Foreign Contribution received during last 3 years: (Rs. in Lakhs)

Country Organisation Purpose Amount

15. Details of office bearers of the Organisation

Sl. no.

Name & address

Male/ Female

Age Post Qualification Profession Annual Income

16. Details of employees of the Organisation:

Sl. no.

Name & address

Male/ Female

Age Post Qualification Profession Annual Salary

17. Details of Managing Committee members of the Organisation:

Sl. no.

Name & address

Male/ Female

Age Post Qualification Profession Monthly Income

Note:

1. The Application should be submitted in triplicate to the Child Development Programme Officer (CDPO) of the project area.

2. Applications either incomplete or without all enclosures will not be entertained. 3. Parts A & B should be completed by the applicant organization and Part ‘C’ by the

CDPO and part D by the state Government.

30

Part-B - Project Details

1. Name of the project:

2. Duration of the Project:

3. No. of beneficiaries to be covered:

SELECTION OF PROJECT AREA 4. Please furnish names of Districts and Blocks proposed to be covered and their type in the following table:

TABLE-1: Project area profile

DISTRICTS BLOCKS RURAL/ URBAN

HILLY/

PLAIN

TRIBAL/NON

TRIBAL

DESERT/ FLOOD PRONE

COASTAL/INTERI

OR INACCESSIBLE/

WELL CONNECTED

5. What were the criteria used for selection of the above mentioned Districts and Blocks? 6. Does your organisation have its main office or branch office in the project area? If yes, please furnish the full postal address. 7. What is the distance between the Head Office of your organisation and the project area? 8. Has the organisation implemented any project in the project area earlier? If yes, please furnish details in the following table:

TABLE-2

Name of Block

Name of Project

Year of implementation

No. ofBeneficiaries

Source of Funds

Expenditure(Rs. in Lakhs)

9. Please list out the main occupations of the people of the project area indicating the approximate percentage of population engaged in each occupation. 10. Are the Blocks proposed to be covered contiguous.

31

SELECTION OF BENEFICIARIES: 11. Year-wise number of beneficiaries to be covered and cooperative to be formed.

TABLE-3

Year No. of beneficiaries

Area of Work- Social/ Livelihood/SHG formation etc.

No. of Co-operatives

1st year

2nd year

3rd year

4th year

5th year

TOTAL

12. What were the criteria used for selection of beneficiaries? Whether a general assessment was made or a benchmark survey was conducted in the project area? 13. Please furnish the findings in the following table:

TABLE-4

Sr.no.

Name of the

block

(1)

Total Population

(2)

No of them eligible

category willing to join the project

(3)

No. of Women already covered

etc.*

(4)

No. of Women not yet

covered

(3-4)

(5)

Out of column 5, no. women with basic knowledge in the proposed

activity

(6)

total

* No of women covered under similar programmes funded by central/State Government, Government agencies, private agencies or international agencies in the past 5 years may be furnished in this column. 14. Details of similar programmes implemented in the project area in the past 5 years:

32

TABLE-5

Name of Programme

Year of implementation

Implementingagency

Cost of Project

Source of funding

No. of beneficiaries covered

15. If no benchmark survey was conducted,

when will the same be done?

EXPERIENCE

16. Has your organisation implemented similar projects earlier? If yes, please furnish details in the following table:

Table-6

Name of Programme

Year of implementation

No. of beneficiaries

No. of beneficiaries

covered

Expenditure (Rs. In Lakhs)

Source of funding

PHYSICAL PHASING OF THE PROJECT 17. Physical phasing of the project may be furnished in the following table:

Table-7

Items PHYSICAL TARGETS Sr.no. Particular 1st year 2nd

year3rd year 4th year 5th year Total

1 Administration (Appoint of staff)

2 Establishment of Cooperatives

3 Skill Upgradation Training

4 Raw material & Equipment for training (Qty).

5 Infrastructure

6 Raw material & Equipment for production (Qty)

7 Marketing(Qty)

8 Others

33

18. Detailed physical targets for each of the above 8 items may be furnished in the following table:

TABLE-8

Items PHYSICAL TARGET

1st year 2nd year 3rd year 4th year 5th year Total

COST ANALYSIS 19. Year-wise cost of Project:

TABLE-9

S.N. Items Cost of project (Rs. In Lakhs)

1st year

2nd year

3rd year

4th year

5th year Total %

1. Administration 2. Establishment of Co-

operatives

3. Skill Upgradation Training 4. Raw material & Equipment

for training

5. Infrastructure 6. Raw material & Equipment

for production

7. Marketing 8. Support Services 9. Contingency

Total

20. Detailed cost break-up for each of the above mentioned 9 items may be furnished in the following table:

TABLE-10

Items Quantity Rate (Rs.) Total Amount (Rs. in Lakhs)

Total

34

21. Cost of the project may be analyzed in the following table:

TABLE-11

Items Salary Honorarium

Furniture & Office Equipment

Stationery Postage

Office Exp.

TA/DA Propulsion & Vehicle

Items to be supplied

to beneficiari

es

Other items Total

1 Administration

2 Establishment

of Cooperatives

3 Skill

Upgradation Training

4 Raw Material

and Equipment for

training

5 Infrastructure

6 Raw Material

and Equipment for

production

7 Marketing

8 Support Services

9 Contingency

Total

22. Recurring (R) & Non-recurring (NR) components:

TABLE-12 Items Cost of project (Rs. In Lakhs)

1st year 2nd year 3rd year 4th year 5th year Total

R NR R NR R NR R NR R NR R NR

1 Administration

2 Establishment of Co-operatives

3 Skill Upgradation Training

4 Raw material & Equipment for training

5 Infrastructure

6 Raw material & Equipment for production

7 Marketing 8 Support Services 9 Contingency Total

35

COST BENEFIT ANALYSIS 23. Total Production per beneficiary per annum, the selling rate and total income may be furnished in the following table:

TABLE – 13 Year Quantity* Rate Total Income

* Cost of

Production Net Income

(4-5)* 1 2 3 4 5 6

1st year of Production

2nd year of Production

3rd year of Production

4th year of Production

5th year of Production

* Information for one beneficiary for one year may be furnished. Note: The net income of beneficiaries from the project should justify the investment proposed under this project. In case the rate of return is lower, the cost of the project should be reduced proportionately.

(Signature)

Date:

PART-C - PROFORMA FOR PRE-SANCTION APPRAISAL REPORT (Guidelines may be referred to before pre-sanction Appraisal)

1. Name, Designation and full Address of the Inspecting Officer 2. Date & time of visit 3. Name & full postal address of NGO 4. Is a name board prominently displayed by the NGO? 5. Have you inspected the original Registration Certificate (RC) of the NGO and is it satisfactory? Is the renewal of RC required? If yes, has it been done (if applicable). 6. Are any managing committee members related to each other? If yes, names of members and their relationship* 7. Are the office bearers of the NGO associated with any other NGO? If yes, names of the NGO(s)* 8. Does the NGO have staff as mentioned in the application form? If not, please indicate the shortfall: 9. Are copies of the audited accounts submitted by the NGO true copies of the original? 10. What is the present bank balance of the NGO

36

11. Whether credit entries are available in the passbook for various income of the NGO mentioned in the audited account? If yes, what amounts have been credited in the passbook for the following income during the last two financial years?

i.Donations

ii.Members contribution

iii.Sale of goods

iv.Income from activities

iv.Grants

vi. Loan from members

12. Name the activities taken up by the NGO for which evidence was available 13. Is there any ongoing activity of the NGO? If yes, please visit some of them and report on performance 14. Name the activities included in the audited accounts and annual report for which no evidence was available 15. Name the assets included in the Balance Sheet but not available for physical verification 16. Are the local people aware of the NGO and its activities?* 17. What is the opinion of local people about the NGO?* 18. Have you come across any instance of misutilisation of funds or complaint involving the NGO? If yes, please give details* 19. In your opinion is the NGO capable of implementing the project applied for? Please give reasons 20. In your opinion, is there genuine need for project in the proposed project area? Please give reasons 21. Has the NGO furnished details of beneficiaries proposed to be covered? If yes, please visit a few of them and furnish the following information:

Name of Beneficiary Whether Below Poverty Line Whether genuinely in need of

assistance under the project?

22. Any other information about the NGO

(Signature) Name: *Opinion of local people also may be obtained before filling these columns.

37

PART-D-RECOMMENDATION BY STATE GOVERNMENT (To be sent within 90 days from date of appraisal report by CDPO. If no reply is received within the time-frame, it will be presumed that the State Govt. supports the proposal) 1. Name and full address of the organisation 2. Name of scheme for which application is made 3. Name and designation of the officer who inspected the organisation 4. Do you agree with the report of the inspecting officer and if not reasons therefore 5. Does the organisation fulfil all eligibility criteria for grants under the scheme? Please elaborate. 6. Will the State Government recover sanctioned grants in the event of misutilisation of funds? 7. Is the Organisation capable of implementing the project applied for? Please give reasons/justifications. 8. Is there any complaint of misutilisation of funds or other irregularities by the organisation? 9. What is the justification for the project applied for? 10. Is the proposal recommended for sanction of grant? (Signature)

Name:

Designation:

38

Annex - III

Check List of the steps to be taken by CDPOs on Receipt of Proposals

i. Check whether 3 copies of the proposal have been submitted.

ii. Check whether the proforma prescribed under the relevant scheme has been

used by the NGO.

iii. Check whether all columns in the application form have been filled.

iv. Check whether all the annexure to be attached with the application form have

been actually attached. Ensure that audited accounts and Annual report are for

the last 3 years.

v. Visit the NGO with prior intimation and fill up the inspection proforma.

vi. While sending intimation to the NGO about visit, ask the NGO to keep all

documents such as registers, audited accounts, passbook, documents not

attached with application form etc. ready.

vii. During the visit, obtain information/documents etc. as the case may also be so

that the applications are complete.

viii. Send the copy of the inspection report and the complete application to the

officer concerned as mentioned in the book i.e. Ministry of Women & Child

Development, Govt. of India, Shastri Bhavan, New Delhi-110001. The second

copy of proposal and inspection report should be sent to DPO/DY. CEO for

onward transmission to the State Government. The third copy may be retained

by CDPO for office record. This should be done 30 days of receipt of application

from NGOs.

39

Annex-IV

Check List for State Level Empowered Committee

1. Bench mark survey to be done:

a) Area of the project identified b) Women beneficiaries to be covered identified c) Age of the women beneficiaries

2. Details of the project a) Whether the organization has any experience in this field b) Physical phasing of the project c) Item-wise and year-wise cost of the project

3. Infrastructural arrangements for the project a) Marketing and selling arrangements after completion of the project. b) Earnings, which would be accrued to the members. c) Time frame within which SHGs will be formed.

4. Training a) Syllabus for the proposed training b) Qualifications of the trainers c) Training in legal awareness timeframe d) Training in general awareness time frame e) Training and involvement of men in the region f) Time frame of completion of training g) Identification of place for training

5. Documents required a) Copy of Registration Certificate (RC)/ Renewal of RC (if applicable) b) Article of Association and Constitution of Organisation. c) Annual Reports of the organisation for the last three years. d) Attested Copies of Audited Statement of Accounts (receipts and payments,

income and expenditure and balance-sheet) for the last three years. e) Outline Map of the project Area. f) Benchmark Survey of the intended beneficiaries. g) Marketing plan and likeup with financial institution h) State Govt. recommendation with minutes of the SLEC meeting

6. On the spot verification Before the project is sent to GOI, it should be verified by the officers of the following ranks: Value (in Rs.) Officers Up to 15 lakhs CDPO/District Welfare Officer 15 to 40 lakhs District Welfare Officer/District Programme officer 40 lakhs to 75 lakhs Joint/Deputy Director 75 lakhs and above Director/Additional Director

40

Annex-V

Check List for Examination of the Proposal S.No. Items Information Page No.1. Whether recommended by SLEC (Yes/No) 2. Whether Pre-Sanction Appraisal Report has

been given

3. Name of the Department and State from which received

4 Name of the Organisation/ Name of the implementing Agency

5. Name of the Trade/Sector

6. No. of beneficiaries

7. Location of the Project

8 Duration of the Project

9. Source of raw materials

10. Whether details/break-up of the cost of the project is given (Yes/No)

11 Total Cost of the Project

12. Year-wise Cost of the Project

13. Per Capita Cost

14. Whether Cost ratio sharing is given (Yes/No)

15. Whether Cost Benefit Analysis of the project has been given or not (Yes/No)

16. Physical phasing of the project

17. Adequate Experience in the Sector (Yes/No)

18. Facilities and Administrative Capacity to undertake the monitor the project (Yes/No)

19. Organization’s Objective 20 Whether particulars about Organisation has

been given (name, address, date of registration, telephone numbers etc. (Yes/No)

21 Whether Essential Documents have been attached (Yes/No)

22 Registration Certificate

23. Memorandum of Association /Bye-Laws

24. Outline Map of the Project Area

25 Benchmark Survey of intended beneficiaries

26. Marketing Plan & Link up with Institutional Finance

27. List of Executive Committee Members (Yes/No) – Male/Female

41

28 Arrangements proposed for technical training and support including trainers name and qualifications

29. Arrangements proposed for support services – Legal awareness, Health education, Health check ups, child care – Name of the resource persons and Department

30. Support Services:

• Mobilize women into viable groups; • Improve their skills; • Arrange for productive assets; • Create backward & forward

linkages; • Improve/arrange for support

services (health, child-care, education)

• Provide access to credit; • Undertake awareness generation; • Impart nutrition education; • Sensitize project functionaries; • Convergence of services.

31 Audited Statement of Accounts (for preceding 3 years)

Financial Year Receipts & Payments

Income & Expenditure

Assets & Liabilities

Surplus or deficit

(i) 200 -200

(ii) 200 -200

(iii) 200 -200

32 Source of Funds

33 Financial Sound (Yes/No)

34 Annual Report (for preceding 3 years)

35

Whether percentage of components are as per norms (Yes/No)

42

Annex – VI

General Check List for Grant in Aid Schemes of Govt. of India

The following are the general principles for scrutiny of grants in aid proposals by the Division implementing grants in aid schemes. The Division head will certify that following provisions have been complied with while forwarding case to IFD for pre-appraisal/concurrence. l. Grants in Aid to be given to a person or a public body or an institution having a legal status of its own. (Rule 148(1) of GFR) 2. Grants to be given under schemes duly approved by a competent authority in Government of India. 3. Institutions / organizations seeking grants in aid from Government must submit an "application which includes vital information such as Articles of Association, Bye-laws, Audited Accounts for the last three years in three forms (Receipt & Payment, Income & Expenditure and Balance Sheet), Sources and pattern of Income & Expenditure, Annual Reports etc. (Rule 149( 1) of GFR) 4, In cases where activities of a body cover more than one function of the Government and body is likely to approach several Departments for grants, consultation should take place between the concerned Departments before grants are approved. (Rule 149(2) of GFR) 5.1n cases where sanction of grants is subject to recommendation of State Government, Inspection Report of the State Governments to be obtained. 6. Selection of organisations should be made keeping in view the inspection report, activities reported in the Annual Report and expenditure pattern as reflected in the Annual Accounts. Independent appraisal of the organisations can be taken up to verify the suitability of organisations, 7. Institutions or bodies receiving grants should, irrespective of the amount involved, be required to maintain subsidiary account of the Government grant. (Rule 150(5) of GFR) 8. In case of non-recurring grants, the Order shall specify the time limit with in which the grants or each installment to be spent and a Certificate of actual utilization of the grants will be specifically insisted and should be submitted within 12 months of the closure of the financial year subject to specific condition laid down in respective scheme. (Rule 151 (1) of GFR) 9. In case of recurring grants, the annual audited statement of accounts and utilization certificate of the grantee institution should be examined to satisfy about proper utilization of grant released for the preceding year before admitting claims for grants in the subsequent financial year Performance Report to be received should also be looked into while sanctioning further grants. Unutilized balance to be recovered or adjusted against fresh releases. (Rule 151 (1) of GFR) 10. In the case of current releases, the progress of expenditure out of the previous releases in same year is to be ascertained.

43

11. Release of funds for on-going projects should be based on actual utilization of funds already provided and the absorptive capacity of the recipient State / organisation. 12. The implementation and execution of various schemes should be oriented towards achieving the end objective rather than merely incurring of expenditure to avoid savings / surrenders. 13. A register of grants should also be maintained by the Sanctioning Authority as per Rule 151 of G FR and to be signed by a Gazetted Officer as per Rule 15 i (4) (d) of GFR. 14. Utilization Certificates to PAO to be issued in respect of past releases before processing proposals for subsequent releases.

44

Annex - VII

Standard Terms and Conditions to be attached to the Sanction Letter of Grants-in-aid

Proposed to be given to a Voluntary Organisation or quasi-Government Organisation

Sanction letter No. ________________ dated _____________ The grant-in-aid sanctioned vide above mentioned letter is subject to the following additional terms and conditions:-

1. No grant-in-aid will be released unless and until the grantee institution conveys his acceptance to the following terms and conditions.

2. The grant-in-aid will not be utilized to meet the expenditure already incurred earlier than a year prior to the date of issue of the sanction letter.

3. Before the grant is released, the grantee shall execute a Bond with two sureties to the President in the prescribed format. The Bond will include the following points:- that (a) the grantee will abide by the conditions of the grant by the target dates, if any, specified therein; (b) that he will not divert the grants and entrust execution of the scheme or work concerned to another institution(s) or organization(s); and (c) shall abide by any other conditions specified in this agreement and in the event of his failing to comply with the conditions or committing breach of the bond, the grantee and the sureties individually and jointly will be liable to refund to the President of India, the entire amount of the grant with interest at 10% per annum thereon or the sum specified under the bond. The interest will be charged only on that portion of the grant, which the grantee fails to utilize for the purpose for which the grant is sanctioned. When a grant is released in installments, interest will normally be charged on each instalment from the date of its release till the date of recovery. [Execution of bond will not apply to quasi-Government institutions and institutions whose budget is either approved by Government or Government has nominated its representative in the Managing Committee/Governing Body.]

4. The rate of interest to be charged will be 10% per annum on the amount of grant-in-aid ordered to be refunded.

5. Where a building is constructed out of the grant-in-aid given by Ministry of Women and Child Development, the responsibility for the maintenance of such building will vest in the grantee institution concerned.

6. The accounts of the grantee institution shall be open to inspection by the sanctioning authority/audit whenever the institution is called upon to do so.

7. The accounts of the grantee institution shall be audited by the Comptroller and Auditor-General of India under Section 14 of the Comptroller and Auditor-General of India (Duties, Powers and Conditions of Service) Act, 1971, if the grants or loans of the institutions in a financial year are not less than Rs. 25 lakhs and it is not les than 75% of the total expenditure of the institution. The accounts may also be audited by the Comptroller and Auditor-General of India if the grants or loans in a financial year are not less than Rs. 1 crore. Where the accounts are so audited by the C&AG in a financial year, he shall continue to audit the accounts for a further period of two years notwithstanding that the conditions are not fulfilled.

8. In all other cases, the institution shall get its accounts audited from the Chartered Accountants of its own choice.

9. The grantee institution receiving grants shall, irrespective of the amount involved, maintain subsidiary accounts of the Government grant and furnish to the Accounts Officer through sanctioning authority a set of audited statements of accounts together with a copy of their constitution. These audited statements of accounts will

45

also be required to be furnished after utilisation of the grant-in-aid or whenever called for.

10. In respect of non-recurring grants the grantee institution shall furnish a certificate of actual" utilisation of the grant for the purpose for which it was received to the sanctioning authority. The grantee shall submit the UC within 12 months of the closure of the financial year in which the grant is released.

11. Where the Utilisation Certificate is not received from the grantee within the prescribed time, the Ministry will be at liberty to blacklist such institution from any future grant, subsidy or other type of financial support from the Government.' The Department reserves the right to give wide publicity of blacklisting the grantee institution so that it cannot receive grants from any other Department of the Government.

12. In respect of recurring grants, the Utilisation Certificate and audited statement of accounts should be submitted before sending proposal for release of grant for the next financial year.

13. AII private grantee institution receiving recurring grants exceeding Rs. 25,000/- shall submit to the sanctioning authority Annual Performances-Achievement reports· soon after the end of the financial year. The report should reach the Department before 31st May of the ensuing year.

14. A review of the performance of the grantee institutions in receipt of recurring grant-in-aid exceeding Rs. 10 lakhs per annum may be undertaken by the sanctioning authority concerned at least once in 3 to 5 years in each case. Some of the leading non-officials interested in the object of particular grant may be associated with the review if the Department considers it necessary to do so.

15. The grantee institution which are mainly financed by the grants from Government will maintain a Register of Assets in the Form (GFR-19) wherein all assets of permanent value and machinery and equipment having a life of not less than 5 years and costing Rs. 10,000/- and above (each item) should be entered. Relevant extracts ·of this Register should be appended to the Annual Statement of Accounts submitted by the institution. This Extract shall contain progressive figures (both stores and value). This Register shall also be subject to check by Audit Parties.

16. As and when an asset is written off, necessary notes shall be kept in the Form GFR 19 by the grantee institution.

17. Library books and articles of furniture need not be taken as falling within the term "assets". Inventories of such articles in the prescribed form should nevertheless be maintained by the authorities and produced at the time of audit.

18. ln the case of grants to non-Government or quasi-Government bodies or institutions, the assets acquired wholly or substantially out of the Government grants, except those declared as absolute and unserviceable or condemned as per procedure laid down in the GFRs, shall not be disposed of without obtaining the prior approval of the authority which sanctioned the grant-in-aid.

19. As and when an asset is written off or is sold, the sale proceeds thereof shall be taken as "receipts of grantee institutions and shown in the Income and Expenditure account (income side) and the book value of the assets disposed of shall be shown as assets disposed of below the total value of the assets on the assets side of the balance-sheet and simultaneously the same value shall be shown under the heading "Capital Investment Written Off' on the liability side of the balance-sheet. This would not be reflected in the Income and Expenditure account (expenditure side) and hereby the expenditure of the grantee institution will not be unnecessarily inflated.

20. The grantee institution will send a certificate to the Ministry that for the project for which this grant is being sanctioned, the institution will not receive any grant from any other Government organisation. If any grant will be forthcoming from any organisation, he will inform the amount of such receipt to the Ministry.

46

Annex -VIII UTILISATION CERTIFICATE

I have verified the account of ____________________________________ ______________________________________________________________ _______________________________________________________________ (Name of grantee organization) in respect of the grant of Rs._____________ released by the Ministry of Women and Child Development vide- Ministry’s Sanction No. ____________________________________________________________ dated______________________________for the ______________________________ ________________________________________________________________________ (Name of the scheme) period ___________________________________and Rs.________________________on account of the unspent balance of previous year with the help of the vouchers and certify that they are correct and that an amount of Rs.____________________________________________has been utilized upto_________________________for the purpose for which it was sanctioned and the remaining amount unutilized at the end of the year _______________is Rs._______________________.

(CHARTERED ACCOUNTANTS) (Please see guidelines for certifying the accounts and endorsing utilisation certificates in respect of Government Grants.)

(GUIDELINES FOR CHARTERED ACCOUNTANTS/ GOVERNMENT AUDITORS)

The Auditors certifying the accounts and endorsing Utilization Certificates in

respect of Government grants should bear in mind the following points. (a) If the number of beneficiaries in the STEP Project is below/above the prescribed limit, the expenditure will vary accordingly at the prescribed rate agreed to by the Project Sanctioning Committee. (b) A separate register for inventories e.g. equipments, machinery, furniture and other assets be maintained indicating the value of the items at the time of purchase in GFR-FORM 19. (c) In case a particular post has been lying vacant for specified period the salaries against that should not be claimed. (d) The Accounts for Ministry of Women & Child Development grants for STEP Project should be prepared separately. Further, in the consolidated Audited Account of the Organization, the expenditure towards this scheme should be shown separately under the Head “Support to Training and Employment”. As far as possible, only the expenditure clearly under each sub-head incorporated in the schematic pattern.

47

Annex-IX

DOCUMENTS REQUIRED FOR RELEASE OF 2ND & SUBSEQUENT INSTALLMENTS OF FUNDS: (to be Submitted through State Govt.)

a. Utilization Certificate of the previous grant-in-aid released. b. Audited Statement of Accounts c. Quarterly Progress Report in the prescribed format d. Minutes of the Monitoring Committee meeting. e. Inspection Report from the State Govt.

48

ANNEX-X

NABARD's guidelines on Organization of Women in SHGs

1. How To Get Started? 1.1 Following steps can be initiated for forming a Self-Help Group (SHG): Visit the very poor families in the village (area of operation) Talk to them If the people do not know you, first talk to them about yourself Speak to the womenfolk Ask what is the most important issue for the family Write all details about the family in the notebook [IT IS IMPORTANT TO BE KNOWN TO THE PEOPLE AND TO WIN THEIR TRUST. TALK TO THE ELDERS IN THE VILLAGE, EXPLAIN YOUR PLAN TO THEM AND REQUEST FOR THEIR SUPPORT. ALWAYS KEEP A SMALL NOTEBOOK.] 1.2 Conduct a small preliminary survey by visiting poor families. This helps in understanding the needs of each individual family. Ask following questions -

Does the family have only one earning member?

Does the family bring drinking water from far away place?

Are the women compelled to go far in the open in the absence of latrine?

Are there old illiterate members in the family?

Are there permanently ill members in the family?

Are there any children in the family who do not go to school?

Is there a drug addict or a drunkard in the family?

Is their house made of kuccha material?

Do they regularly borrow from the moneylenders?

Do they eat less than two meals a day?

Do they belong to scheduled castes or scheduled tribes? [THE ABOVE MENTIONED QUESTIONS ARE ILLUSTRATIVE, A FACILITATOR MAY FRAME/ASK OTHER QUESTIONS ALSO, KEEPING IN VIEW THE GROUND LEVEL CONDITIONS. IF THE ANSWER TO 3-4 OF THESE QUESTIONS IS ‘YES’, THE FAMILY MAY BE CONSIDERED AS POOR] 1.3 Facilitator should visit the same families again. When s/he meets them for the second time, it would be appropriate to share with them the information about other families (contacted by the Facilitator) in the village, which also have very similar problems like them. By visiting the families, the Facilitator will be able to know which of those families could come together in SHGs. S/he will also understand what their common requirements and problems are. [EVERY TIME THE FACILITATOR VISITS SUCH FAMILIES, S/HE SHOULD MAKE IT CLEAR THAT S/HE IS NOT THERE TO PROMISE OR DISTRIBUTE ANY SUBSIDY MONEY UNDER ANY SCHEME. THIS IS VERY IMPORTANT TO AVOID MISUNDERSTANDING AT LATER STAGES.]

49

2. How SHGs Are Formed? When a Facilitator speaks to families in a village/locality, s/he will find that some kind of mutual liking already exists between many of them. Some known reasons for mutual affinities are :

Similar experience of poverty

Similar living conditions

Same kind of livelihood

Same community or caste

Same place of origin

It will be easy at this stage to find out which families are likely to get together better. 3. Pre-SHG Formation Meeting Before SHGs are formed, hold a meeting of the community leaders and elders of the village. Explain to them your plan to form SHGs. It is very important to get support from them. This is called community participation. This will also give acceptance to the Facilitator’s work in the village. This is the right time to tell everyone that the meetings are not for “giving” anything, but to “enable” the poor families to come together and help each other. It will be very useful if the Facilitator explains the basic principles of Self-Help Group in this meeting. 4. How Do SHGs Take Shape? After meeting the elders and community leaders, the Facilitator is now ready to call SHG members for a meeting. S/he can get one member from each of the identified families to come for a meeting on a convenient day. This can be called a “start up meeting”. During this meeting, the Facilitator will get a lot of questions. Her/his answers will help the members slowly understand the concept further. Please allow sufficient time for the members to understand the different aspects of group formation. [THE PROCESS OF FORMING GROUPS NORMALLY TAKES FIVE TO SIX MONTHS. ONCE THE GROUP IS FORMED, IT TAKES ONE TO ONE AND A HALF YEARS TO SETTLE TO A STABLE PATTERN.] 5. Characteristics of SHGs The ideal size of an SHG is 10 to 20 members [IN A BIGGER GROUP, MEMBERS CANNOT ACTIVELY PARTICIPATE] Usually, SHGs are informal entities [SHG NEED NOT BE REGISTERED] From one family, only one member [MORE FAMILIES CAN JOIN GROUPS THIS WAY] Normally a SHG consists of either only men or of only women [MIXED GROUPS ARE GENERALLY NOT PREFERRED] Women groups are generally found to perform better Members have the same social and financial background [MEMBERS INTERACT MORE FREELY THIS WAY] The group should meet regularly [MEMBERS UNDERSTAND EACH OTHER BETTER IF THEY MEET WEEKLY/FORTNIGHYLY] Compulsory attendance

[FULL ATTENDANCE FOR LARGER PARTICIPATION]

50

6. Membership During the initial meetings, following things may happen: Some members leave

Some new members come in

The members slowly learn to decide subjects for meetings

They learn to conduct meetings

They understand the value of records and documents

They want to remain together and help each other

These are normal stages. This will give Facilitator the confidence that s/he is moving in the right direction. 7. Leadership One member of the group needs to take the lead. How is this person identified? The best way is to ask the following questions within the group :

QUESTIONS ANSWERS Who should decide everything for the SHG ? All members should decide Who benefits from the SHG ? All members benefitWho should do the work ? All should share the workHow can the work be shared? Agree on one person to take up the work by rotation

This way, the members will understand the reason for rotation of the responsibilities. This will make it easy to choose a member to take initiative for the two main activities i.e. the book keeping and organising meetings. 8. How Do SHGs Function? 8.1 It is advisable to have simple rules to enable SHGs to function smoothly. Some of the important areas, for which rules are necessary, are indicated below.

Periodicity of the meetings (weekly/fortnightly/monthly)

Time and venue of meetings

Amount of periodical savings

Internal lending

Taking loan from banks

Repayment period

Penalties for non-attendance in the meetings and default in repayments 8.2 Training of the SHG members is very critical to the proper functioning of SHGs. Providing training in the following broad areas should be considered. Basic mathematics

Writing of books

Scheduling of meetings

Social aspects (like women empowerment)

51

Basics of lending money, borrowing, repaying Most effective method of training of SHG members is to take them to a good working SHG and allowing free interaction with its members. 8.3 Following are the important functions of SHGs

Savings and Thrift

The amount may be small, but savings have to be a regular and continuous habit with all the members

“Savings First Credit Later” should be the motto of every group member

Group members learn how to handle large amounts of cash through savings. This is useful when they use bank loans

Internal Lending

Savings to be used as loans for members

The purpose, amount, rate of interest, etc., to be decided by the group itself

Enabling SHG members to obtain loans from banks and repaying the same

Book Keeping

Proper accounts to be kept by the SHG

Record of meetings, attendance, etc.

Opening savings bank account with bank

Discussing Problems

Every meeting, the group will discuss and try to find solutions to the problems faced by the members of the group

9. Book Keeping By the SHG

Simple and clear books for all transactions to be maintained

If no member is able to maintain the books, someone to be engaged by the group for the purpose

Facilitator can also help

Following books/documents should be maintained by SHG

Minutes Book - for recording the proceedings of meetings, the rules of the group, names of the members, etc.

Savings and Loan Register - Shows the savings of members separately and of the

group as whole, details of individual loans, repayments, interest collected, balance, etc.

Weekly Register - Contains a summary of receipts and payments on a weekly

basis and is updated every meeting

Members’ Pass Books : Individual members’ passbooks encourage regular savings 10. Linking of SHGs to Bank

52

Linkage of SHGs with Bank is very important not only from the point of view of securing financial stability, but also from the point of view of empowerment and enterprise development. This can be achieved through following steps. 10.1 Opening of Savings Bank Account With A Bank Branch

The Reserve Bank of India/NABARD has issued suitable instructions to all commercial banks, regional rural banks and cooperative banks, permitting them to open SB A/cs of registered or unregistered SHGs

SB A/c in the name of SHG could be opened after obtaining from the group the

following documents :

Resolution from the SHG - The SHG has to pass a resolution in the group meeting, signed by all members, indicating their decision to open SB A/c with the bank. This resolution should be filed with the bank

Authorization from the SHG - The SHG should authorize at least three

members, of which any two would operate upon their account jointly. The resolution along with the filled in application form duly introduced by the Facilitator/any other person may be filed with the bank branch

Copy of the Rules and Regulations of the SHG - Although not mandatory, it is advisable. If the group has not formulated any such rules or regulations, loans can be sanctioned without them also.

A savings bank account passbook will be issued to the SHG. This should be in

the name of the SHG and not in the name of any individual/s. 10.2 Internal Lending by the SHG

After saving for a minimum period of 2 to 3 months, the common savings fund should be used by the SHG for lending to its own members

The purpose, terms and conditions for lending to its members, rate of interest

etc., may be decided by the group through discussions during its meeting (RBI and NABARD have permitted the members to decide on these aspects). The interest is usually kept as 2 or 3 rupees per hundred rupee per month. It may be noted that interest per month is better understood in villages, than annual interest

Simple and clear books of account of savings and lending should be kept by the

SHG

Through internal lendings, the members of the SHG will learn to properly manage, utilise and repay their SHG loans. This will be of help, when they later borrow from the bank

10.3 Assessment of the SHG It is to know whether the SHG has been functioning well and this can be done with the help of the check list given below.

Sr. No.

Factors to be checked Very good Good Unsatisfactory

1 Group Size 15 to 20 10 to 15 less than 102 Type of members Only very poor

members2 or 3 not very poor members

many not poor members

3 Number of meetings Four meetings in a month

Two meetings in a month

Less than two meetings in a month

4 Timings of meetings Night or after 6 pm Morning between Other timings

53

7 and 9 am5 Attendance of members More than 90% 70 to 90% Less than 70%6 Participation of members Very high level of

participationMedium level of

participationLow level of participation

7 Savings collection within the group

Four times a month Three times a month

Less than three times a month

8 Amount to be saved Fixed amount Varying amounts --9 Interest on internal loan Depending upon the

purpose24 to 36% More than 36%

10 Utilisation of Savings amount by SHG

Fully usedfor loaning to members

Partly used for loaning

Poor utilisation

11 Loan recoveries More than 90% 70 to 90% Less than 70%12 Maintenance of books All books are

regularly maintained and updated

Most important registers minutes,

maintaining and savings, loans,

etc.)are updated

Irregular in updating books

13 Accumulated savings More than Rs. 5000/-

Rs. 3000-5000/- Less than Rs. 3000/-

14 Knowledge of the Rules of the SHG

Known to all -- Not known to all

15 Education level of members

More than 20 percent can read

and write

-- Less than 20 per cent know to read and

write 16 Knowledge of Govt.

programs All are aware of

Govt. Programs

Most of the members know

about Govt. programs

No one knows

SHGs with 12 to 16 "very good” factors may be considered for providing loans

immediately

SHGs with 10 to 12 "very good” factors should be given 3 to 6 months’ time to improve, before a loan is given

SHGs with rating of less than 10 “good” factors will not be considered for loan

10.4 Sanction of Credit Facility to SHG

In whose name? - The loan should always be sanctioned and issued in the name of the group and not in the name of the individual members

Quantum of loan? - The amount of loan to the SHG can be to the tune of 1 to 4

times of its savings

What constitutes the savings of the group? -

The group’ balance in the SB A/c Amount held as cash with the authorised persons Amount internally lent amongst the members Amount received as interest on the loans Any other contributions received by the group like grants, donation, etc.

Purposes for which the loan can be given to the SHG? - Loan may be granted by

the SHG for various purposes to its members. The bank does not decide the purposes for which the SHG gives loans to its members. The purpose can be emergency needs like illness in the family, marriage, etc. or buying of assets for

54

income generation acquisition of assets. The group will discuss and decide about the purpose for which loans are to be given to its individual members by the SHG

Who makes the repayment? - The SHG makes the repayment to the bank. The group is collectively responsible for the repayment of the loan.

What is the collateral security for the bank? - RBI/NABARD rules stipulate that no

collateral security should be taken from SHGs by banks. Collateral security is not necessary for the loans sanctioned to SHGs because :

• The members of SHGs know that the bank loan is their own money like savings

• They are aware that they are jointly responsible for the repayment • Therefore, they exert moral pressure on the borrowing members for

repayment As a result, the bank gets a much better repayment from the SHG

Can the bank hold the SB A/c balance of the SHG as a security? - No. This will

prevent the SHG from lending from its internal savings.

What is the rate of interest to be charged for the loans granted to SHG by the bank? - The Reserve Bank of India has allowed the banks freedom to decide on the interest rates to be charged to the SHGs.

What is the rate of interest to be charged by the SHGs to its members? - The

rate of interest to be charged by the group to its members should be left to the group. This is usually 2 or 3 rupees per hundred rupees of loans.

10.5 List of Documents Required By Banks

Inter-se Agreement to be executed by all the members of the SHGs [THIS IS AN AGREEMENT, EXECUTED BY THE MEMBERS WITH THE BANK, AUTHORISING A MINIMUM OF THREE

MEMBERS TO OPERATE THE GROUP ACCOUNT WITH THE BANK] Application to be submitted by SHG to bank branch while applying for loan

assistance. [THIS INCLUDES DETAILS OF THE PURPOSES FOR WHICH THE SHG GIVES LOAN TO ITS MEMBERS]

Articles of Agreement for use by the bank while financing SHGs. [THIS CONTAINS THE DULY STAMPED AGREEMENT BETWEEN THE BANK AND THE SHG WHEREIN BOTH THE

PARTIES AGREE TO ABIDE BY THE TERMS AND CONDITION SET THEREON] ********

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Annex - XI

MONITORING FORMAT

(To be submitted on Quarterly basis for period ending June, September, December and March)

PART-A 1. Title of the Project

2. Implementing Agency

3. Location of the Project

4. Objectives of the Project

5. Duration of the Project

6. Component-wise estimated cost of the Project

7. Component-wise amount spend so far (cumulative).

8. Reasons for shortfall, if any.

9. Targeted No. of beneficiaries

10. Number of Actual Beneficiaries

11. No. of villages covered

12. Criteria for Selection

13. Criteria for Selection of beneficiaries

14. Increase in the income of beneficiaries during quarter

PART-B

1. Component-wise Budget Allocation for the year. 2. Activity areas.

(i) Name of Activity. (ii) Beneficiaries.

-Rural -Urban -Total (iii) Working hours per day. (iv) Average Income per day (v) Production -During the Month

56

-So far. (vi) Sale -During the month -So far.

PART-C

1. Estimate Budgetary Allocations.

PART-D

2. Loan/Credit extended to Beneficiaries.

PART-E

PHYSICAL TARGETS/ACHIEVEMENTS (CUMULATIVE)

Sl.No. Components Targets Achievements Up to (year) Upto (quarter)

57

PART-F

FINANCIAL BENEFITS TO WOMEN MEMBERS FROM THE PROPOSED ACTIVITY

Sl. No. Particulars Before Commencement During Of the project the month

PART-G

1. Other Development Programmes Including Awareness Generation Programme (AGP).

Sl. No. Name of the Programme

1. Health care 2. Child care 3. Credit facility provided 4. Communication/Trg. 5. Housing 6. Insurance 7. Others

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PART-H 1. Link agencies

(i) Number of Agencies (ii) Names of the linked agencies

(a) NDDB (b) Welfare Department (c) Health Department (d) AH & Fisheries (e) Others

NON-GOVERNMENTAL ORGANISATION

PART-I

1. Supervision and coordination 2. Progress with reference to

Non-quantifiable inputs, i.e., Mobilisation, awareness generation and integration of the services.

PART-J

Sl. No. Weak areas Remedial Action Action Plan for taken next qtr.

TO BE FILLED UP BY THE PROJECT DIRETOR 1. Observation/Comments 2. Problems 3. Suggestions.

(PROJECT DIRECTOR)

Date:

59

APPENDIX-I

SUPERVISION AND COORDINATION (Remarks)

APPENDIX-II

PROGRESS OF NON-QUANTIFIABLE INPUTS The impact of the Project on non-quantifiable activities are:-

(a) Self confidence in rural women to manage their own institutions. (b) Gradual and radical change in the traditional system of social

behaviors (family barrier to remain indoors).

(c) Sense of responsibility for income generation. (d) Exposure/knowledge to essential needs of life like child immunization,

maternal and child health care, importance of nutritious food/clean drinking water, self hygiene and family planning, child spacing programme.

(e) Self motivation and mobilization to participate in different types of

training programme within the village/ district/commissioner/State and any other part of the country.

(f) Demands/grievances for maternal health care, child immunization,

child and adult education, activities relate to cottage industries etc.

*****

60

ANNEX­XII 

INSPECTION PROFORMA FOR STEP PROJECT 

Date of Inspection: 1. Name and address of the

NGO/Federation/Corporation Telephone/Mobile/ FAX No.

2. Location Inspected

3. Name & Designation of the Inspecting Officer

4. • Title of the Project • Name of the project area –

District/villages covered

5. Total cost of the project

6. • Amount released by GOI so far • Implementing agency’s share

7. Number of beneficiaries (Total)

8. Number of beneficiaries proposed to be covered so far Number of beneficiaries covered so far

.

9. • Number of Cooperative Societies/SHGs proposed so far

• Number of Cooperative/SHGs formed so far

10. Details of faculty/trainers (name, qualification and experience)

11. Number of trainees present on the day of visit

12. Details of distribution of stipend, if any

13. • Details of sanctioned raw material, Infrastructure and equipment acquired/available at the training center.

• Details of raw material supplied to the beneficiaries.

14. Source of Raw material

61

15. Is the NGO submitting the Reports timely in the prescribed proformae.

16 Registers and records maintained by the organisation

17. Arrangements made for tie up with Financial Institution/ getting loans to the beneficiaries

18. Details of Link agencies. 19. Increase in the income of beneficiaries

after training Before training After training

20. Details of Marketing arrangements/Tie up,

if any.

21. Other Development Programmes including Awareness Generation Programme:

improve/arrange for supportive services (health, child care, education etc.)

undertake awareness generation undertake gender sensitization impart nutrition education sensitize project functionaries

Number of camps organized so far.

22. View of the beneficiaries, if any

23. Overall impression of the project implementation so far.

24 Remarks

(Signature of the Inspecting Officer) Name:

Designation: Date: